Dividend Declaration Hyperion 1999 Term Trust, Inc. - Jan. 13, 1995.

NEW YORK--(BUSINESS WIRE)--Jan. 13, 1995--Dividend Declaration Hyperion 1999 Term Trust, Inc. - Jan. 13, 1995.

The Board of Directors of the Hyperion 1999 Term Trust, Inc. (NYSE:HTT) today declared a new monthly dividend of $0.04583 per share. This dividend which is payable on Jan. 30, 1995, to shareholders of record on Jan. 23, 1995, was lowered due to the decreased benefit of leverage due to an increased cost of financing attributable to the increase in the Federal Funds rate over the past year. This dividend represents a monthly return of 5.5% (an annualized rate) on shares of the Trust's initial offering price of $10.00 per share. The current yield on shares of the Trust based on the NYSE closing price of $6.625 on Jan. 12, 1995 was 8.30%, which is 50 basis points greater than the current yield on the 5-Year Treasury Note. The net asset value (NAV) per share is currently $7.72.

The Hyperion 1999 Term Trust, Inc. is a diversified closed-end management investment company. The Trust's investment objectives are to provide shareholders with a high level of current income consistent with investing in securities of the highest credit quality and to return at least $10.00 per share (the Trust's initial public offering price per share) to investors on or shortly before November 30, 1999. All securities in which the Trust invests will be either (i) issued or guaranteed by the U.S. Government or one of its agencies or instrumentalities or (ii) at the time of investment, rated in the highest rating category by a nationally recognized agency (e.g., AAA by Standard & Poor's Corporation or Aaa by Moody's Investors Service, Inc.).

The Trust is actively managed to take advantage of relative value opportunities in various sectors of the mortgage market. The Trust is currently managed with an average duration of between 0 and 1 year. Currently the average life of the securities in the portfolio is approximately 4 years.

Portfolio Breakdown as of Jan. 12, 1995:

As a percentage of investments

Mortgage-Backed Securities 27.0%

Collateralized Mortgage Obligations (CMOs) 33.2%

Multi-Family CMOs 1.3%

Municipal Securities 13.0%

Asset-Backed Securities 6.2%

Interest-Only Securities (IOs) 9.6%

PAC IOs 1.0%

Principal-Only Securities 6.3%

PAC Principal-Only Securities 2.4%

The Trust's investment adviser is Hyperion Capital Management, Inc., a registered investment adviser based in New York with approximately $4 billion in assets under management. Additional information on the Trust's assets and performance is available by calling Hyperion Fund Marketing at (800) HYPERION or by calling Prudential Fund Management, Inc. [phone].

CONTACT: Hyperion 1999 Term Trust Inc.

Hyperion Fund Marketing, (800) HYPERION

or

Prudential Fund Management, Inc., 212/214-3334